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High ratio means company finance more capital by debt instead of stock market, indicates higher risk to investor especially leverage risk and default risk. Ur payback debt blabla statement is only happen when company bankrupt, debtors have higher priority than shareholders to take back money by take over company assets. D/E ratio did affected ECO share price, but the logic behind is not like u said.
Main concern is "is the generated income through raising debt enough to cover the finance cost?" a single ratio is useless, need to find the relation and logic behind the number, this is what fundamental analysis do but not just looking at the sales and profit. I can say that most of the ppl in here don't get the core point of FA although they think that they are FA preferred.
